Crypto Market Mood Swings Signal Caution Amid Global Tensions

Crypto markets have seen a minor rally in recent days as crowd sentiment improved, but analysts warn that this may not be a good sign. According to analytics provider Santiment, crypto traders have 'flipped their expectations several times' in just one month.

In early June, the crowd was heavily bearish, calling for lower prices as Bitcoin slipped to $58,000. However, they've since flipped bullish as BTC rebounded towards $64,000, said Santiment.

Markets tend to move opposite to what the crowd is most loudly expecting, 'because markets tend to punish crowded trades', said Santiment.

The market dip followed renewed strikes on Iran by the US following the attack on commercial ships in the Strait of Hormuz. Bitcoin fell to an intraday low of $62,600 during Wednesday morning trading in Asia, down 2.3% from its intraday high of just over $64,000 late on Tuesday.